11:15-12:30 - Panel 9 - Marly. French Government Assets

Transcription

1 11:15-12:30 - Panel 9 - Marly 1 French Government Assets

2 2 Public sector: innovative way of financing strategic assets Charlotte LAVIT d HAUTEFORT Director IFSP, Head of development & coordination, Structured Finance, Dexia

3 A closer interaction between the public and private sectors Strategic needs and assets Innovative funding solutions Municipalities & Regions Social housing Healthcare Education Transportation Environment National infrastructures Roads / rail Security/prisons Budget constraint (Eurostat) Risk transfer Improved Value for money PPP/PFI Securitisation

4 1- PFI/PPP in Europe Definition : Provision by the private sector of a capital asset-based service to the public sector in return for an ongoing performance-based fee. Financial mechanism : Payment by the public sector during the operational phase of the project (30+years) reflecting the risk transfer : Avaibility based payment for accomodation project (schools, hospitals) Demand/Usage based payment for transportation project (shadow toll road) Legal Framework : PPP specific framework in almost all European countries Towards a European framework for PPP : Promotion of the Competitive Dialog as Procurement procedure Eurostat rules (11 february 2004) for public accounting treatment of PPP The Public sector becomes a service buyer and no more an asset producer/buyer

5 1- A growing PPP market in Europe UK PFI market : 15% of all public procurement in form of PFI. Projects closed to date : 60 Bn EUR capital value Continental Europe : Projects in tender as of end 2005 : 65 Bn EUR Level of PPP development Denmark Austria Czech Republic Belgium Luxembourg Greece Slovakia Italy Germany France Hungary Finland Portugal Netherlands Spain Ireland United Kingdom Dormant Developing Mature

6 1- Recent PPP transactions Madrid Calle 30 (Spain, 2005) M EUR Madrid Ring Road Renovation project is the biggest PPP launched in Spain to date. Dexia acted as Mandated Lead Arranger M6 Duna Autopalya (Hungary, 2006) 205 M EUR Monoline wrapped and secured bond issue to refinance the new M6 motorway connecting Budapest with the Hungarian-Croatian border. Dexia acted as Sole Lead Manager of the issue. Oldham school PFI project (UK-2006) 67 M GBP Design, construction, operation and maintenance of 2 schools under a 25 year post construction PFI contract on behalf of Oldham metropolitan Borough Council. Dexia acted as Sole Lead Arranger and equity investor.

7 2- Securitisation for the public sector Definition : Sale by the public sector of assets refinanced through bond issues on the financial markets. Revenues from the assets will reimburse the bonds. Public Assets securitised : real estate properties, arrears in tax and social contributions Benefits : Better allocation of resources Acceleration in the sale process Improvement in the management of the assets :introduction of benchmarking practices in the public sector Alternative off balance sheet funding if compliance with Eurostat rules (July 2002) The public sector actively manages the asset side of its balance sheet

8 Public sector securitisation transactions Italian State transactions on real estate assets Date Transaction Seller Amount (M ) Assets 06/2006 Patrimonio Uno Italian Ministry of Economy & Finance 398 Commercial real Estate 04/2005 FIP (Fondo Immobili Pubblici) Italian State Commercial Real Estate : offices, public buildings 04/12/02 SCIP II (Societa di Cartolarizzione Immobili Pubblici) 17/12/01 SCIP I (Societa di Cartolarizzione Immobili Pubblici) 7 social securities entities 7 social securities entities Residential and commercial real estate Residential and commercial real estate Total Since 1999, Italian State has issued notes totalling EUR 42 Bn backed by assets ranging from social security contributions and future flows lottery to personal loans and loans for research purpose

9 Public sector securitisation transactions Selection of Italian local public sector transactions Date Transaction Seller Amount (M ) Assets 2006 Healthcare receivables Region of Abbruzzo 323 Healthcare receivables 2004 VECART City of Venice 60 Residential and commercial real estate 2003 PRIMA Region Friuli 60 Residential and commercial real estate 2003 Cartesio Region Lazio 2000 Renting revenues from hospitals Since 2002, Italian public sector has issued notes totalling more than EUR 5 Bn backed by real estate assets, contributions to enterprises and healthcare receivables

10 10 Pavillon d Armenonville Tuesday 4 & Wednesday 5 July, 2006